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Equity release has withstood crunch, says provider
6 May 2008 12:00
The credit crunch has not diminished the public's appetite for equity release, according to Norwich Union, but has instead made these products even more important.
Although data from the sector's regulatory body, Safer Home Income Plans, indicates that the take-up of equity release plans fell by 13 per cent year-on-year to 5,892 in the first quarter, it is expected to rise again in line with a recent increase in enquiries.
Norwich Union's head of marketing for post-retirement products Anthony Rafferty has concurred that future take-up will reflect this growing demand and asserted that equity release had actually been fairly unaffected by problems plaguing the mainstream market.
He insisted that this type of product in fact wholly suits current circumstances, with the house price growth seen over the past decade having been far from eradicated, while the UK's ageing population is blighted by a worsening pensions deficit.
Mr Rafferty therefore predicted that as the cost of living increased and the full extent of Britain's pension problems became apparent, equity release would become an even more central tool to retirement planning.
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